Hanley Investment Group Closes $5.2M in Quick Quack Car Wash Ground Lease Deals in Inland Empire

Absolute triple-net assets tied to essential automotive services remain a fiercely competitive sector in commercial real estate, a trend confirmed by the recent $5.2 million sale of two Quick Quack Car Wash locations in the Inland Empire. According to REBusinessOnline, the newly constructed properties in Hesperia and San Bernardino each commanded an identical price of roughly $2.6 million. The transactions highlight how aggressively institutional and private capital continues to chase shielded, long-term net-leased assets.

Key Details

The dual transactions encompass two separate 3,596-square-foot car wash facilities constructed for the rapidly expanding Quick Quack brand. The real estate advisory firm Hanley Investment Group orchestrated the deals, with brokers Bill Asher and Jeff Lefko representing the respective sellers in both instances.

Structurally, the deals are textbook examples of modern net-lease investing. Both locations operate under 20-year absolute triple-net (NNN) ground leases. This specific lease structure is highly sought after because it places the burden of all property taxes, insurance, and structural maintenance entirely on the tenant, leaving the landlord with a purely passive income stream over a two-decade horizon. At $2.6 million per parcel, the pricing reflects the aggressive cap rate compression seen in the single-tenant automotive sector, particularly for properties backed by corporate ground leases.

Market Context

For commercial real estate professionals, the sale of these two San Bernardino County facilities is a strong indicator of the enduring strength of the car wash asset class. Over the past several years, express car washes have transitioned from a niche subcategory to an institutional-grade investment vehicle. Investors are drawn to the subscription-based revenue models that operators like Quick Quack utilize, which provide a buffer against economic volatility and ensure reliable rent payments.

Furthermore, the Inland Empire market specifically continues to demonstrate immense resilience. As industrial and residential populations boom in cities like Hesperia and San Bernardino, the supporting retail and automotive infrastructure becomes increasingly valuable. Real estate tied to vehicle maintenance benefits from this exact demographic momentum, as local traffic density directly correlates to business volume.

The sale also reflects a broader appetite for sale-leaseback and ground-lease structures in an era marked by interest rate fluctuations. By locking in 20-year terms, the buyers are effectively securing a long-term yield without the operational headaches typical of traditional commercial real estate. As cap rates for standard retail assets fluctuate, the ground lease model offers a rare combination of commercial tenant credit and a predictable, bond-like return profile.